With their firm cutting back on risky businesses like their own, Deutsche Bank’s quantitative trading team is leaving to start a hedge fund.

The members of the Equitech Group are setting up New York-based Roc Capital Management, Bloomberg News reports. The fund will open in the second quarter with more than 20 staffers, including traders and scientists. In addition, the firm will have a team of 40 in India, trained by Equitech.

Equitech lost just 1% last year, but Deutsche Bank’s CEO Josef Ackermann’s decision to cut back on proprietary trading includes the quant group. The team returned 2.37% last month.

Roc Capital will be headed by Arvind Raghunathan, currently head of global arbitrage.

Editor's Note

In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…